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Swan defends record on infrastructure

Treasurer Wayne Swan says the federal government is giving infrastructure financing "serious consideration" as a Labor appointee to the Reserve Bank board calls for budget deficits to fund new roads, railways and ports.

Heather Ridout and fellow board member John Edwards have told News Limited investing in key urban projects would spur productivity as the commodity price boom ends.

Ms Ridout argues that under-investment is constraining Australia, and she wants state and federal governments to go into deficit to fund the infrastructure.

"We have under-invested. Congested roads in cities are a major sign that we're not doing well enough," she said.

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Asked if going into debt was the answer, Mr Swan said the government was considering a report by Infrastructure Australia on financing.